Find out more about the different types of home insurance and which type is right for you and your home. Learn more about the best home insurance policies in your state: Ohio Home Insurance, Indiana Home Insurance, West Virginia Home Insurance, Maryland Home Insurance.
Types of Home Insurance
Basic Form Home Insurance
This form of home insurance only covers your home under 10 perils and for this reason many insurance companies do not carry this type of insurance anymore. Under basic form insurance your home and belongings are protected at their cash value against things such as lightning, windstorms, fire and smoke, and theft.
Special Form Home Insurance
Special form home insurance is the most common type of home insurance and provides open peril coverage for your home. This means it covers any damage to your home unless there is a specific exclusion in your policy. The personal belongings in your home are covered by 16 specific perils listed in the policy such as fire and theft.
Broad Form Home Insurance
Broad form insurance covers your home and personal belongings under 16 named perils including the perils covered under basic form insurance plus 6 additional perils like the weight of ice and falling object. Broad form will cover the structure of the home at its replacement cost and personal items at actual cash value.
Renters Form Insurance
Renters form insurance covers the renter’s personal belongings on specific perils layed out in your policy such as theft or fire. Your renter’s insurance may also cover damage you do to the unit you are renting. The landlord will have their own insurance that covers the overall structure of the property.
Comprehensive Form Home Insurance
Comprehensive form insurance is the home insurance type with the highest amount of coverage and is usually the most expensive. Comprehensive form insurance provides open peril coverage for both the structure of your home and your personal belongings. So you will be covered for everything other than what is written as an exclusion in your policy.
Condo Owners Inurance
Condo owners insurance will protect your personal belongings as well as the inside of your unit. Typically, the condo owners association will have their own insurance that protects the other parts of the property that are not your responsibility.
Mobile Home Insurnace
Mobile home insurance will usually cover perils such as structure damages, personal property, and liability costs if someone is injured. A mobile home may be built in a factory and transported to a specific location of choice or have a permanent foundation.
Older Home Coverage
If you own an older home it may be beneficial to have some added coverage to your policy. Old homes are not always up to date so coverages such as water back up coverage, roof replacement coverage, and service line coverage can help you avoid big costs down the road.
FAQ’s for Home Insurance
How do I know which home owner’s insurance type is right for me?
Picking a home insurance policy will depend on where you live, the amount of coverage you want, and your budget. A home insurance agent at Malhotra & Assoc. Insurance can help you find a policy that best fits your individual needs.
Is home insurance mandatory?
No, legally home insurance is not required, but there are many reasons why having home insurance is important. Mortgage lenders will require you to have home insurance in order to get a loan and up until the loan is paid off. It is also important to have home insurance in order to protect your own finances. For example, many people would not be able to buy a new home and belongings if everything was lost in an accident or natural disaster.
For more information on your home owner’s insurance needs, contact Malhotra & Assoc. Insurance. We are here to help you get the best quote for your home insurance needs!
For more information call us at 1-800-945-1410